Vehicle Research

Overview: Colombian Fleet Market

There are approximately 3.8 million fleet vehicles in operation in Colombia and most fleets are small. “A company with 20 vehicles is considered a big fleet,” said Carla Podesta, service development manager for RENTING Colombia. However, there are exceptions. In 2007, RENTING Colombia signed up SABMiller, which operates a 1,500-vehicle fleet.

During 2011, there were approximately 320,000 new vehicles sold in Colombia, which represented a 30-percent increase over the prior year. “There were several factors contributing to this, which included lower taxes on imported vehicles, an average income increase for Colombian workers, brand and price diversity, and growing financing alternatives,” Podesta said.

In 2012, Colombia stopped importing used vehicles from China. “Once used vehicles are no longer imported, it will help new-vehicle sales,” Podesta said.

Key drivers for fleet sales growth are companies focusing on their core businesses. Also, free-trade agreements are forcing companies to invest in productive assets and consider leasing. There are tax benefits to company-provided vehicles.

New-vehicle prices are going down and the used-vehicle market value is difficult to predict, resulting in increased depreciation risks. Poor road conditions and an insufficient number of qualified drivers also contribute to poor vehicle condition, which directly impacts depreciation.

A new, long-term, strategic agreement reached by Hino and Volkswagen will evaluate technology cooperation between the two companies with a focus on conventional powertrains, hybrid and electric powertrains, as well as connectivity and autonomous driving systems.

The next-generation Chevrolet Silverado HD will debut next year, as a 2020 model, according to the automaker. It will be the third all-new truck in the Silverado lineup revealed in just 18 months, joining the 2019 Silverado 1500 and the new medium-duty lineup.